More Advantages of an ESOP

If you are an owner looking for a long-term exit strategy, or if you have employees who think like business owners, or if you are a private company with 30 or more employees, you might want to consider forming an ESOP.  This article explains ESOPs and their tax benefits. What is an ESOP? An Employee Stock Ownership Plan (ESOP) is a company-funded retirement plan that holds company stock in accounts for the employee participants.  An ESOP is a... Read More

Why Should Companies Consider Succession Planning?

The success of a company depends on the quality of its leaders and the management team they put in place. Often times, owners of a business spend a great deal of time and resources to put a management team in place that is capable of driving profitability and competitiveness while instilling the right corporate culture in the company. Such positive measures in turn benefits the owners and current leaders of the company. The question is what happens... Read More

How to Minimize Taxes by Forming an ESOP

In today’s competitive business environment, no company can afford to have disinterested, unproductive workers on its team. And while some firms opt for incentive programs and other perks to keep employees motivated and productive, others have found the answer in an innovative ownership structure know as an Employee Stock Ownership Plan or ESOP. At their simplest, ESOPs are tax-qualified, pension plans that make the employees of a firm beneficial... Read More

ESOP interesting facts

Did you know that in the United States, the ESOP is by far the most common employee stock ownership plan? Fact ESOPs where unknown until 1974.  Today approximately 11,000 companies have these plans, covering over 13 million employees. According to data provided by the NCEO (The National Center for Employee Ownership), ESOPs are “almost never used to save troubled companies.”  Instead, ESOPs are most commonly used to provide a market... Read More